Why Natalie Massenet Really Left Net-a-Porter

An exclusive report by Business of Fashion has revealed what went on behind the scenes preceding Natalie Massenet's shock departure from the brand she founded.

Jan 20, 2016 2:42am

By Grace O'Neill

Prominent fashion business news site Business of Fashion published an exclusive, in-depth exposé overnight, revealing the behind-the-scenes dealings that contributed to Natalie Massenet's shock departure from Net-a-Porter last year. Massenet, who founded the brand more than 15 years ago and built it into one of the biggest luxury e-tailers in the world, announced her departure soon after it was revealed that NAP was merging with Italian competitor Yoox, and that she would be serving as executive chairman of the joint company.

Following the announcement speculation was rampant about a supposed power struggle between Massenet and Yoox founder Federicho Marchetti, who was appointed chief executive and had already caused controversy by calling himself the company’s sole boss. According to BoF, however, Massenet’s departure had more to do with NAP’s Swiss owners Compagnie Financiere Richemont, who essentially sold off her company without telling her until months later.

The article alleges that Massenet was caught completely off-guard when she attended a 15-minute meeting with Richemont’s co-CEO and CFO in February of 2015, in which she was told Net-a-Porter had been sold, months earlier for £950 million ($1.95 billion AUD) to the brand’s their fiercest competitor, Yoox. The sale price was, according to Massenet, less than half the business’s actual worth, which she estimated as being closer to £1.8 billion ($3.7 billion AUD).

Following the meeting - which was said to have left Massenet “stunned and standing on the street in tears” - Massenet, Carmen Busquets (NAP’s first major investor) and a team of the brand’s senior staff attempted to organise a management buyout (MBO). An MBO essentially refers to a situation in which the existing staff of a company rally investors to buy the company back from a new owner. Despite rallying a body of investors including fashion industry heavyweights LVMH, Conde Nast, Kering and Barneys, who allegedly offered £1.3 billion ($2.7 billion AUD) to buy back Net-a-Porter, Richemont rejected the MBO and continued with the planned merger.

As an ongoing legal dispute over the company’s value continued (Richemont and Massenet’s team of NAP management eventually settled on a value of £1.45 billion [$3 billion AUD], which resulted in Massenet taking home more than $200 million), Massenet put on a brave face and appeared to embrace the merger once the news went public. After some soul searching during her 50th birthday celebrations in Italy that May, however Massenet ultimately made the decision to leave Yoox Net-a-Porter entirely, announcing her decision in September of last year.

The article has left many wondering how it is that Massenet, a savvy businesswoman, could have the company she founded and ran sold without even knowing about it. More importantly, however, it’s making us all wonder what the hell she’ll do next. Read the full article, which had the whole office talking this morning, here.